Euro Falls to 17-Month Low on French Debt and Political Worries

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Summary · why it matters

The euro slid Monday to its lowest level against the dollar in 17 months as concerns mounted over France's high debt and deficits, sending French government bond yields soaring. The decline followed an underwhelming 2027 budget plan unveiled last week that fanned fears French government spending will stay high ahead of next year's presidential elections, in which the far-right Marine Le Pen, seen as a fiscal populist, stands a chance of winning. French debt is projected to rise to nearly 122 percent of the country's GDP next year despite billions of euros in planned spending cuts, pushing the 10-year government bond yield to 4.8 percent, the highest since the 2011 eurozone bond crisis. A call for snap elections in Spain by Prime Minister Pedro Sanchez added another layer of uncertainty, with Patrick Munnelly of Tickmill Group saying Europe's political risk is weighing on the euro. In Paris, the CAC 40 fell 0.9 percent to 7,824.28, dragged down by bond-yield worries and a nearly 10 percent drop in Schneider Electric shares after the company unveiled a $22.6 billion all-cash deal to buy the US engineering software specialist PTC.

Impact on assets 4

Artificial Intelligence▼ · 1 stocks
Schneider Electric S.E.
SU
▼ NegativeCapitalrelevance

Schneider Electric shares drop nearly 10% after unveiling a $22.6B all-cash deal to buy PTC.

Cloud & Digital Infrastructure▲ · 1 stocks
PTC Inc
PTC
▲ PositiveCapitalrelevance

Schneider Electric's $22.6B all-cash deal to acquire PTC is a takeover bid for the company.

Others▼ · 1 stocks
Others▲ · 1 stocks
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